Slovak politicians reach EU bailout-fund deal

Deal reached to approve changes to EU bailout fund later this week, a day after rejection had brought down government.



    Slovakia's main political parties have reached a deal to approve changes to an EU bailout fund later this week, effectively ending a crisis that had threatened the currency's main safety net.

    Robert Fico, head of the Smer-Social Democracy, the main opposition party, said on Wednesday that Slovakia will ratify the bloc's rescue fund without any problems.

    "I believe it will happen on Friday this week at the latest," said Fico.

    Fico said that in exchange for his party's votes, three outgoing government party leaders had agreed to hold early general elections on March 10.

    The approval for boosting the European Financial Stability Facility hit an obstacle a day earlier when a junior party in Prime Minister Iveta Radicova's government blocked its passage in a confidence vote that also toppled the cabinet.

    With the government now defunct, and with the promise of early elections, Fico said his party will vote in favour of the bailout fund, which all 16 other members of the eurozone have already supported.

    Eurozone leaders had agreed in July to increase the size and powers of the bailout fund.

    Germany and France, the leading powers in the bloc, have promised to propose a comprehensive strategy to fight the debt crisis at an EU summit on October 23.

    SOURCE: Agencies


    YOU MIGHT ALSO LIKE

    'We scoured for days without sleeping, just clothes on our backs'

    'We scoured for days without sleeping, just clothes on our backs'

    The Philippines’ Typhoon Haiyan was the strongest storm ever to make landfall. Five years on, we revisit this story.

    How Moscow lost Riyadh in 1938

    How Moscow lost Riyadh in 1938

    Russian-Saudi relations could be very different today, if Stalin hadn't killed the Soviet ambassador to Saudi Arabia.

    Unification: Saladin and the Fall of Jerusalem

    Unification: Saladin and the Fall of Jerusalem

    We explore how Salah Ed-Din unified the Muslim states and recaptured the holy city of Jerusalem from the crusaders.